Home Inspection
As soon as the seller has accepted the buyer's offer, the buyer will usually arrange for an inspector to come out to the home and examine it for problems, defects, and safety issues.
The inspection will give you an accurate picture of the home's condition. The inspector will examine the exterior and interior of the home, checking the condition of electrical, plumbing, ventilation, structural, and finish elements throughout, as well as the condition of appliances that will be transferred to the buyer at the time of purchase. An inspection generally takes a few hours, and at the end of the process, the inspector will provide the buyer with a report of all the issues discovered during the inspection.
Also, most purchase and sale agreements include an inspection contingency. This gives the buyer the right to use the results of the inspection to negotiate with the seller to cover the cost of repairs, or to back out of the deal altogether. Under the terms of most inspection contingencies, the buyer has the right to back out of the purchase and reclaim his earnest money after reading the inspection report.
What issues will an inspector look for?
While you should always rely on a licensed inspector for a professional opinion of a home you intend to purchase, it can be helpful to know what sort of issues to look for. Some of these issues may be minor and easily fixed, while others can require expensive and difficult repairs. Check out our Interactive Home Inspection for more information, plus pictures of common issues to watch out for.
It depends on the terms of your contract. Some inspection contingencies allow the buyer to back out the deal for any reason after viewing the inspection report. Others require the buyer to cite any "deal-breakers" in the report, and to then give the seller the option of addressing the issue before backing out of the deal.
One caution about using the inspection contingency as a "get out of jail free" card -- if you're not serious about your offer, the seller is missing an opportunity to work with other buyers while working with you. The inspection contingency is an important form of protection for the buyer, but don't abuse it by making halfhearted offers.
Your real estate agent should be able to provide you with references to inspectors. You should make sure that the inspector you choose is registered with a reputable home inspector's group, such as the American Society of Home Inspectors (ASHI) or the National Association of Home Inspectors (NAHI). Both groups provide a directory of home inspectors on their websites.
Inspections usually run between $300 and $500, depending on local rates and the size of the home. The inspector may also suggest additional follow-up inspections by specialists, such as a sewer scope to verify the condition of the sewer line from the home, or a structural engineer to give a more detailed report on cracks or bulging in the home's foundation. These follow-up inspections may also run several hundred dollars in cost, if needed.
Tip!
After you purchase your home, you may notice an issue that the inspector apparently missed. What should you do?
- First, do not have the item repaired, unless it's urgent or a safety issue (such as a broken pipe or gas line). Give the inspector the chance to come back to the home, look at the issue, and determine if it was present at the time of the inspection.
- The inspector may schedule a return visit to inspect the issue. It's possible that the issue is not covered under the inspector's agreement, or was not visible to the inspector. Remember, most inspectors are limited to a plain-sight, non-invasive inspection; they're not allowed to damage or disturb the seller's property while doing their job.
- The inspector will discuss the issue with you, and review the terms of the inspection agreement to decide whether or not it should have been covered by the original inspection.
- If the inspector did miss an item that should have been reported, the repairs will usually be covered by their insurance. Most inspectors will try to "make it right" for their clients if they missed a problem during the inspection.
- Remember, if you see an item that you think your inspector missed, call your inspector as soon as possible. The terms of your inspection agreement will probably include a time limit for following up on these issues.